How Will Venezuela Deal With A PDVSA Default?

While debt servicing has been a government priority, declining
external liquidity and a deteriorating domestic situation
(three-digit hyperinflation, shortages, and a political crisis
between the government and the National Assembly) make it a
daunting task. By 2020, the country must repay 30 percent of the
external debt due to expire in the next 23 years. Venezuela can get
access to liquidity via three main ways. The first option is to
borrow directly on the financial market which implies that the
country must pay an increasingly prohibitive risk…

While debt servicing has been a government priority, declining
external liquidity and a deteriorating domestic situation
(three-digit hyperinflation, shortages, and a political crisis
between the government and the National Assembly) make it a
daunting task. By 2020, the country must repay 30 percent of the
external debt due to expire in the next 23 years. Venezuela can get
access to liquidity via three main ways. The first option is to
borrow directly on the financial market which implies that the
country must pay an increasingly prohibitive risk…